(Reuters) — CF Corp (CFCO.O), a blank check company founded by veteran dealmaker Chinh Chu, said on Wednesday it would buy U.S. annuities and life insurer Fidelity & Guaranty Life (FGL.N) in an all-cash deal valued at about $1.84 billion.
The deal comes a little over a month after FGL terminated its agreement to be acquired by China’s Anbang Insurance Group Co Ltd [ANBANG.UL] for $1.6 billion.
CF Corp’s offer of $31.10 per share is at an 8.4 percent premium to FGL’s Tuesday close of $28.70. CF Corp will also assume $405 million in FGL’s debt.
CF Corp, a special purpose acquisition company which went public in May 2016, is a company with no assets that raises money in an IPO which it uses, often alongside debt, to buy other companies.
The investor group, including Chinh Chu, William Foley, funds affiliated with Blackstone Group LP (BX.N) and Fidelity National Financial Inc (FNF.N), will invest about $900 million to fund the deal.
Chu ended a 25-year career at Blackstone last year, while Foley is the non-executive chairman of the board of U.S. title insurance services provider Fidelity National.
The deal is expected to close in the fourth quarter of 2017, subject to shareholder and regulatory approvals.
Bank of America Merrill Lynch and FT Partners acted as advisers to CF Corp, while Credit Suisse advised FGL on the deal.